At Forex market Naira crashes by N1.22 over demand pressure

At the foreign exchange market (FX market), the Naira came under pressure against the United States Dollar as demand for forex by customers was very high.

This may be connected to the Central Bank of Nigeria’s (CBN) notice to FX users to stop patronizing the unofficial parallel market but use the I&E window for forex transactions.

However, there appears o be a shortage of FX supply at the official FX market as the demand pressure is impacting negatively on the local currency as of trading on Friday.

Business Post reports that the Naira depreciated against the greenback on Friday by N1.22 or 0.30 per cent to close at N414.90/$1 compared with N413.68/$1 it was traded on Thursday.

Also on Friday, the value of trades increased to $193.59 million from the previous day’s $175.86 million, reflecting an increase of $17.71 million or 10.1 percent.

The value of the local currency also lost 3 kobo to close at N410.70/$1 compared to N410.67/$1 it traded in the previous session at the interbank segment of the forex market.

At the crypto currency market on Friday, eight of the ten tokens monitored suffered losses.

However, Cardano (ADA) and the United States Dollar Tether (USDT) appreciated at the market by 1.2 per cent and 0.1 per cent to close at N1,374.04 and N576.01 respectively.

On the losers end, Ethereum (ETH) depreciated by 7.6 percent to sell at N1,713,900.99, Litecoin (LTC) dropped by 6.6 percent to trade at N86,848.72, while Dash (DASH) lost 5.8 percent of its previous value to trade at N97,992.14.

Further losses recorded were, Tron (TRX) losing by 3.9 per cent to cap at N53.39, Ripple (XRP) lost 3 percent to close at N559.99 Dogecoin (DOGE) moved downwards by 2.4 per cent to close N125.90, while Bitcoin (BTC) traded at N24,809,058.00 after losing by 1.9 per cent.